3/30/2021 0 Comments Mark Leonard Constellation
While the tech sector dives into glitzy business models and loss-making operations, this sober Canadian giant has been consistently generating profits for decades.His intention was to create a holding company that acquires small- and mid-sized software firms focused on niche enterprise solutions.
Over roughly three decades, the holding firm has acquired over 300 firms. That should cement Mark Leonards reputation as one of the best capital allocators in the world. Constellation Software stock currently offers a paltry 0.31 dividend yield, which is a combination of quarterly and occasional payouts. Mark Leonard Constellation Free Cash FlowManagement wants to stop special dividends to reserve more of its free cash flow for acquisitions. ![]() In other words, the team is vastly expanding its investment universe, which opens up an unlimited avenue of potential growth. Its currently trading at 33.2 times forward earnings per share. The stock is also trading at just 29.6 times free cash flow per share. Compare that to other tech growth stocks that are trading at 60 times sales and you can see why Constellation is so attractive. If the team can execute this shift in strategy effectively, shareholders could be in for a massive windfall in a few years. The stock is up a mere 2.8 today. That presents an opportunity for savvy investors. ![]() Its strategy of acquiring small- and mid-sized software firms has created immense wealth for shareholders. Now, the company is targeting bigger companies beyond software. So if youre tired of reading about other people getting rich in the stock market, this might be a good day for you. Mark Leonard Constellation Plus A CompleteBecause Motley Fool Canada is offering a full 65 off the list price of their top stock-picking service, plus a complete membership fee back guarantee on what you pay for the service. Simply click here to discover how you can take advantage of this. Were Motley Questioning an investing thesis even one of our own helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content. ![]() I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for further information.
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